ISPs Need to Restrategize for Sustainable Growth and Profitability – WTES Projects

Internet Service Providers (ISPs) in Nigeria have been challenged to revamp their business and market operations for growth, sustainability and profitability.

The charge was made by Mr Chidi Ajuzie, Chief Operating Officier, WTES Projects Limited, at the Telecoms Sector Sustainability Forum organised by Business Remarks in Lagos State themed “Examining the Nigerian Internet Service Providers (ISPs) Viability in a Digitized Environment.

Speaking during his paper presentation, Ajuzie said the Nigerian ISPs are going through a major challenge of surviving, therefore they must expand their scope of operations and look out for more opportunities, not only for sustainability but also for growth and profitability.

Highlighting some critical challenges faced by ISPs such as vandalisation, competition, tariffs, taxes and duties, power availability and cost, Ajuzie said this sub-sector needs regulatory support in terms of licensing issues, spectrum availability and price, inter-sector policies framework, Right of Way intervention, human security and safety at the plants.

“The past two years have been very challenging for the ISPs, lots of damages done to infrastructures, particularly in Lagos State. Federal Government needs to put out laws to enforce the protection of critical telecoms infrastructure.

Although ISPs play an important role in providing internet connectivity and achieving the National Broadband Plan (NBP 2020- 2025), Ajuzie emphasized that they do not need to be static to ensure their survival.

According to him, silos are the bane of ISPs operations in Nigeria consuming both OPEX and CAPEX.

“ISPs need to be highly innovative, by going beyond typical connectivity to embracing Value Added Services and providing solutions on fibre infrastructure.

“Internet Service Providers need to understand their market, take informed deliberate steps to increase their revenue turnover”, he said.

While commending Business Remarks for creating a platform for ISPs to collectively discuss, he said ISPs must be familiar and aware of industry trends, competition, and regulatory policies.

Ajuzie encouraged embracing collaboration for profit maximisation and provision of good quality of service to customers.

“Collaboration is key for Internet Service Providers to successfully played across all the tiers. ISPs need to find key players to collaborate with for wider broadband reach as well as save costs. They must consolidate and expand serviceable footprints

“ISPs also need to monetize and stabilize existing infrastructure; provide End-to-End solutions and service but focus on end-users wallets”, he noted

Furthermore, Ajuzie stressed that the growing demand for data capacity, digital services, 5G and the increasing need to invest in infrastructure efficiently are major growth drivers for ISPs.

Charging them to be future-ready, he said connectivity is key even with the embedded opportunities growth outlook in emerging trends such as 5G, Cloudification, data centre, pervasive fibre, and open access. According to him, this can only be successfully done with Fibre Infrastructure.

“ISP’s business in Nigeria is viable but we need to watch out and look out for governmental support at the federal, state and local levels for enabling business environment”, he stressed.